Circular flow of income

HideShow resource information

Shows the connections between different sectors of our economic system. 

Revolves around flow of goods and services and factors of production between firms and households 

Businesses produce goods and services and incomes are generated for factors of production.

Leakages, money which is not flowed between businesses directly. 

  • Put aside for future spending (bank account or other deposits)
  • Paid


No comments have yet been made

Similar Economics resources:

See all Economics resources »See all Circular flow of income resources »